The EIN number is a mandatory tax identification number for every company in the United States. Therefore, it is important to professionally perform the EIN application process in obtaining this critical number for companies. EIN number is similar to social security number. For example; it is in the form of 21-3546789. Like the ITIN number, it is issued by the IRS (American Revenue Service). EIN will be the first step you will take after establishing your LLC in America. Another name for the EIN number is the federal tax identification number.
The Importance of EIN in the Business Sector in USA
It is very important to have an EIN in order to run your company business in the USA. EIN application is as important to companies as the SSN (social security number) is to American citizens. Government agencies and non-profit organizations, partners, companies use the EIN number. It is most commonly used in tax filing and tax reporting.
After the establishment of a company in the USA, an EIN number is required for opening an account with American banks. In addition, you need an EIN (Federal Identification Number) to take loans from these banks, employ workers and many other transactions. Also, other companies with which you partner or do business in the United States may ask you for your EIN number.
Documents Required for EIN Application
An important point to know is that the EIN application can be made individually. This number can be obtained without having to be in the USA. For this number, issued by the IRS, an SS-4 form must be completed through the IRS website. Before filling out this form, all of the information and documents written below must be complete. You can make this application after you receive a stamped document confirming that the company you have established in the United States has been approved by the state.
All information and documents required during the EIN application:
- Your Company Name: The full name of the company you established in the USA. The full name of the company on the documents, located at the state address where the company is registered. Finally, there must be an LLC.
- Your Company’s Postal Address: The postal address to which all correspondence will be sent.
- IRS’s Information on Who to Contact: When making a notification, the US Internal Revenue Service should have information about who to send this notification to. This person does not have to be in America. The company partner can be a corporate lawyer, manager or accountant.
- Date of Business Start: The exact incorporation date of your LLC.
- For EIN Application Brief Description of Your Business: The IRS needs to know what your company does. Company category, a brief introduction of the work done is required.
- Information of the State Where Your Company Is Established: This information must be present when applying.
- Tax Category of Your Company: It is the information of which taxes your company will be subject to and it is essential to provide correct information. If the company has more than one partner, the IRS automatically classifies your company as a partnership. A sole proprietorship is called a sole proprietorship. In these two cases, only one form must be filled.
- Name and Surname of the Person in Charge of the Company: It can be any of the board members of your company. There is no requirement for this person to be in the USA. A person with an SSN (Social Security Number) may be liable. However, if the responsible person has an SSN, it must be reported.
Is EIN Required for Non-US Residents?
Yes, it is necessary. Wherever you reside inside or outside the USA, you must obtain an EIN if you own a company in the US and have a business establishment there.
Can I get an EIN remotely before going to the USA? Yes, you do not need to go to the USA to get an EIN. You can get an EIN by correctly filling out a form called SS4 and faxing it to the IRS. By the way, if you have an ITIN or SSN, you can get an EIN number for your company by online EIN application in 10 minutes from the IRS website.